MIRA
INFORM REPORT
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Report Date : |
10.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
MEDITECH
INNOVATIONS |
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Registered Office : |
802,
Aggarwal Cyber Plaza, Netaji Subhash Place, Pitampura, New Delhi |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1997 |
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Legal Form : |
Partnership
Concern with an Unlimited Liability of the Partners |
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Line of Business : |
Importer
and Supplier of Medical and Surgical Equipments |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
5000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed concern having satisfactory track. Partners
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are usually correct and as per
commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
802,
Aggarwal Cyber Plaza, Netaji Subhash Place, Pitampura, New Delhi, India |
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Tel. No.: |
91-11-42470205/
65930521 |
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Fax No.: |
91-11-42470521 |
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E-Mail : |
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Website : |
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Area : |
600
Sq.ft. |
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Location : |
Rented
(Commercial) |
PARTNERS
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Name : |
Mr.
Mithilesh Singh |
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Designation : |
Partner |
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Date of Birth/Age : |
32
years |
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Qualification : |
B.E.,
MBA |
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Experience : |
7
years |
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Name : |
Mr.
Vikas Singh |
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Designation : |
Partner |
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Date of Birth/Age : |
31
years |
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Qualification : |
Graduate |
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Experience : |
5
years |
BUSINESS DETAILS
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Line of Business : |
Importer
and Supplier of Medical and Surgical Equipments |
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Products : |
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Imports from : |
China and Korea |
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Terms : |
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Selling : |
Credit
(30/60 days) |
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Purchasing : |
Partly
TT/Wire Transfer and Document against Payment basis |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
5 |
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Bankers : |
State
Bank of India UTI
Bank ICICI
Bank Limited |
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Banking Relations : |
Satisfactory |
CAPITAL STRUCTURE
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Capital
Investment : |
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Owned : |
Rs.1.000
millions |
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Borrowed : |
-- |
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Total : |
Rs.1.000
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
Note : The subject is a Non-Incorporated business
entity and thus not obliged to file any information on itself with any Official
Authority (Registrar of company) open for public inspection. The above
mentioned information is obtained directly from the subject itself.
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover [including other income] |
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5.500 |
5.000 |
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Profit/(Loss)
Before Tax |
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0.150 |
0.128 |
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Provision
for Taxation |
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0.025 |
0.028 |
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Profit/(Loss)
After Tax |
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0.125 |
0.100 |
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Total
Expenditure |
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5.350 |
4.872 |
Note : The Projected Turnover for the financial
year ending March 31, 2007 shall be to the tune of Rs.7.500 millions approx as
claimed by the subject.
KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.27 |
2.00 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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2.73 |
2.55 |
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Return
on Investment (ROI) (PBT/Networth) |
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|
12.50 |
11.43 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References :
Authorised
Distributor : AKAS Medical Equipments, Chennai-600029, Tamilnadu, India
Industry Overview :
India is
till below the international market level with regard to the production of
medical technology. The volume of the Indian market for medical technology is
estimated at Euro 270 million. The local market is estimated – according to
source – at a quarter to a third and the annual growth rate of local production
at twelve to 13 percent. Forecasts assume an increase of three to seven folds
by the year 2010. The local content should significantly increase of here,
however, the overall demand on imports should also undergo further large
increase – according to cautious estimates at least double. At present, the
rate of imports is about 7 percent and the amount of imports has doubled in the
past five years.
The
privatisation of the insurance sector should act as catalyst for further
increase of market volume. Up to now, only 2 millions (which means only 0.2
percent) of the more than one billion Indians have health insurance. The
potential is estimated at 300 millions. Also, the government plans to introduce
standard qualities for hospitals should increase the demand for medical
facilities and prospect the market.
The
segments involving instruments, medical devices and one-way products has, with
4 percent, the largest share in the market for medical technology, according to
Mckinsey analysis. Reagents and test kits form the second-largest segment (20
percent), followed by radiology equipment (15 percent) and equipment for
chemical and physical analysis (14 percent).
Also,
the local production of indicating high growth rates. According to estimates,
65 percent of the Indian manufacturers in this sector can be classified as
belonging to the SEM sector, which means that their average annual sale volume
is not above Rs.5 millions. Some products of the lower segment are manufactured
in the country, particularly electrochemical equipment and consumer article.
Indigenous production also exists for the electronic medical equipment sector.
However, a high demand for imports in this sector is also to be reckoned with
on a long-term basis. The Indian healthcare providers are particularly
interested in products of the medium and lower segment. At 70 percent, the
greatest demand is from the public sector.
The
private sector leads with the import of high-end equipment. The conditions for
exporting to India have significantly improved since the economic opening up in
the middle of the nineties. Import licenses have been cancelled, majority-owned
subsidiaries are possible, and dividends can be paid out abroad. However, the
import duties for medical devices are very high. In individual cases, they can
be up to 30percent. A further obstacle for export to India is the so called BIS
Registration (Bureau of Indian Standards), a laborious and expensive quality
inspection process carried out by the Indian Standards Association. However,
from the medical technology sector only X-ray equipment has up to now been subject
to BIS Registration.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.53 |
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UK
Pound |
1 |
Rs.86.24 |
|
Euro |
1 |
Rs.57.80 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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